TSX:ATA

Stock Analysis Report

ATS Automation Tooling Systems

Executive Summary

ATS Automation Tooling Systems Inc. provides factory automation solutions worldwide.

Rewards

Trading at 30.7% below its fair value

Earnings are forecast to grow 12.43% per year

Earnings grew by 60.3% over the past year

Risk Analysis

Has a high level of debt



Snowflake Analysis

Solid track record with excellent balance sheet.

Share Price & News

How has ATS Automation Tooling Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ATA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

3.7%

ATA

-0.8%

CA Machinery

-0.08%

CA Market


1 Year Return

26.9%

ATA

2.5%

CA Machinery

10.8%

CA Market

Return vs Industry: ATA exceeded the Canadian Machinery industry which returned 2.5% over the past year.

Return vs Market: ATA exceeded the Canadian Market which returned 10.8% over the past year.


Shareholder returns

ATAIndustryMarket
7 Day3.7%-0.8%-0.08%
30 Day-0.3%-4.5%0.01%
90 Day10.8%-2.1%1.2%
1 Year26.9%26.9%5.4%2.5%14.4%10.8%
3 Year79.0%79.0%2.4%-4.4%15.0%4.6%
5 Year38.4%38.4%28.9%18.5%40.1%19.4%

Price Volatility Vs. Market

How volatile is ATS Automation Tooling Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ATS Automation Tooling Systems undervalued compared to its fair value and its price relative to the market?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ATA (CA$20.17) is trading below our estimate of fair value (CA$29.1)

Significantly Below Fair Value: ATA is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ATA is poor value based on its PE Ratio (23.6x) compared to the Machinery industry average (20.8x).

PE vs Market: ATA is poor value based on its PE Ratio (23.6x) compared to the Canadian market (15.1x).


Price to Earnings Growth Ratio

PEG Ratio: ATA is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: ATA is good value based on its PB Ratio (2.3x) compared to the CA Machinery industry average (2.4x).


Next Steps

Future Growth

How is ATS Automation Tooling Systems forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

12.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ATA's forecast earnings growth (12.4% per year) is above the savings rate (1.4%).

Earnings vs Market: ATA's earnings (12.4% per year) are forecast to grow faster than the Canadian market (10.5% per year).

High Growth Earnings: ATA's earnings are forecast to grow, but not significantly.

Revenue vs Market: ATA's revenue (3.1% per year) is forecast to grow slower than the Canadian market (4.9% per year).

High Growth Revenue: ATA's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ATA's Return on Equity is forecast to be low in 3 years time (10.3%).


Next Steps

Past Performance

How has ATS Automation Tooling Systems performed over the past 5 years?

12.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ATA has high quality earnings.

Growing Profit Margin: ATA's current net profit margins (5.9%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: ATA's earnings have grown by 12.5% per year over the past 5 years.

Accelerating Growth: ATA's earnings growth over the past year (60.3%) exceeds its 5-year average (12.5% per year).

Earnings vs Industry: ATA earnings growth over the past year (60.3%) exceeded the Machinery industry -20.7%.


Return on Equity

High ROE: ATA's Return on Equity (9.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ATS Automation Tooling Systems's financial position?


Financial Position Analysis

Short Term Liabilities: ATA's short term assets (CA$753.9M) exceed its short term liabilities (CA$435.4M).

Long Term Liabilities: ATA's short term assets (CA$753.9M) exceed its long term liabilities (CA$496.3M).


Debt to Equity History and Analysis

Debt Level: ATA's debt to equity ratio (40.3%) is considered high.

Reducing Debt: ATA's debt to equity ratio has reduced from 66.2% to 40.3% over the past 5 years.

Debt Coverage: ATA's debt is well covered by operating cash flow (32.1%).

Interest Coverage: ATA's interest payments on its debt are well covered by EBIT (5.5x coverage).


Balance Sheet

Inventory Level: ATA has a low level of unsold assets or inventory.

Debt Coverage by Assets: ATA's debt is covered by short term assets (assets are 2.3x debt).


Next Steps

Dividend

What is ATS Automation Tooling Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%2.0%markettop25%5.6%industryaverage5.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ATA's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ATA's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if ATA's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ATA's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of ATA's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

What is the CEO of ATS Automation Tooling Systems's salary, the management and board of directors tenure and is there insider trading?

7.3yrs

Average management tenure


CEO

Andrew Hider (42yo)

2.8yrs

Tenure

CA$5,132,100

Compensation

Mr. Andrew P. Hider has been the Chief Executive Officer of ATS Automation Tooling Systems Inc. since March 6, 2017. Mr. Hider has been Vice President and General Manager of Anderson Instrument Co., Inc. s ...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD3.88M) is above average for companies of similar size in the Canadian market ($USD2.15M).

Compensation vs Earnings: Andrew's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.3yrs

Average Tenure

52yo

Average Age

Experienced Management: ATA's management team is seasoned and experienced (7.3 years average tenure).


Board Age and Tenure

2.4yrs

Average Tenure

55yo

Average Age

Experienced Board: ATA's board of directors are not considered experienced ( 2.4 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$3,482,74021 Dec 18
Mason Capital Management, LLC
EntityCompany
Shares250,000
Max PriceCA$14.05

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • James Kopperson (52yo)

    Chief Financial Officer of Solar Group

    • Tenure: 13.9yrs
  • Stewart McCuaig (56yo)

    Corporate VP

    • Tenure: 0yrs
    • Compensation: CA$899.70k
  • Maria Perrella

    Chief Financial Officer

    • Tenure: 11.8yrs
    • Compensation: CA$1.88m
  • Andrew Hider (42yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: CA$5.13m
  • Christian Debus

    President of Process Automation Solutions

    • Tenure: 0yrs
  • Simon Roberts

    Senior Vice President of Global After Sales Service

    • Tenure: 0yrs
    • Compensation: CA$788.70k
  • Chris Hart

    President of Life Sciences

    • Tenure: 0yrs
    • Compensation: CA$753.10k
  • Sonya Mehan

    Director of Investor Relations & Corporate Communications

    • Tenure: 0yrs
  • Angella Alexander

    Chief Human Resources Officer

    • Tenure: 1.2yrs
    • Compensation: CA$936.20k
  • Joe Metri

    Chief Information Officer

    • Tenure: 0yrs

Board Members

  • David McAusland (65yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$289.76k
  • Neil Arnold (70yo)

    Independent Director

    • Tenure: 12.3yrs
    • Compensation: CA$227.35k
  • Joanne Ferstman (51yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$130.70k
  • Michael Martino (55yo)

    Independent Director

    • Tenure: 12.3yrs
  • Phil Whitehead (67yo)

    Independent Director

    • Tenure: 1.3yrs
    • Compensation: CA$134.80k
  • Kirsten Lange (52yo)

    Independent Director

    • Tenure: 2.2yrs
    • Compensation: CA$201.09k
  • Andrew Hider (42yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: CA$5.13m

Company Information

ATS Automation Tooling Systems Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ATS Automation Tooling Systems Inc.
  • Ticker: ATA
  • Exchange: TSX
  • Founded: 1978
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: CA$1.847b
  • Shares outstanding: 92.10m
  • Website: https://www.atsautomation.com

Number of Employees


Location

  • ATS Automation Tooling Systems Inc.
  • 730 Fountain Street North
  • Building #2
  • Cambridge
  • Ontario
  • N3H 4R7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ATATSX (The Toronto Stock Exchange)YesCommon SharesCACADDec 1993
ATODB (Deutsche Boerse AG)YesCommon SharesDEEURDec 1993
ATSA.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDDec 1993

Biography

ATS Automation Tooling Systems Inc. provides factory automation solutions worldwide. The company is also involved in the planning, designing, building, commissioning, and servicing automated manufacturing  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 23:30
End of Day Share Price2019/12/10 00:00
Earnings2019/09/29
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.